National Employee Happiness Improves as Construction Employers Face Labor Strain

Employee satisfaction improved in the first half of 2026, but younger and mid-tenure workers continue to report lower satisfaction, offering insights for construction workforce retention.

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Employee satisfaction is showing signs of recovery after several years of decline, but the improvement is uneven across age groups and employee tenure, according to workforce data from BambooHR.

The company's employee Net Promoter Score (eNPS) rose to 40 in the first half of 2026, a 4.4% increase from the same period a year earlier and the strongest first half since 2023. The score measures how likely employees are to recommend their company as a place to work.

While the data covers the broader workforce, the findings are relevant to construction companies facing persistent challenges around recruiting, retaining and developing skilled workers. For contractors, keeping experienced employees can be just as important as bringing new workers into the industry.

Employee Satisfaction and Retention

BambooHR data shows companies with higher employee satisfaction had 46% lower turnover than companies with the lowest satisfaction scores. Companies with negative eNPS scores also had higher first-year turnover, at 2.7%, compared with 2.1% among companies with excellent eNPS scores.

The difference was particularly seen among smaller businesses. Companies with 150 or fewer employees and negative eNPS scores experienced annual turnover rates 18 to 19 percentage points higher than their happiest counterparts.

For construction companies, where the loss of an experienced operator, foreman, project manager or skilled tradesperson can affect productivity and project continuity, retention remains a critical workforce issue amid an already strained workforce.

The data does not establish that employee dissatisfaction directly causes turnover. Higher turnover could also contribute to lower morale, or both could be influenced by other factors. Still, the findings suggest employee satisfaction is worth tracking alongside retention, hiring and productivity metrics.

Younger Workers Report Lower Satisfaction

Employee satisfaction certainly varied by age, with younger workers reporting some of the lowest scores.

Workers ages 26 to 30 reported an eNPS nine points below the overall average in the first half of 2026. Workers aged 51 to 60 reported scores eight points above average, creating a 17-point gap between the two groups.

Workers over age 50 saw some of the strongest gains in satisfaction, while employees under 30 experienced only slight improvement.

The findings could be particularly relevant to construction employers trying to attract younger workers. Pay remains an important factor, but overall career development, recognition, management and opportunities to advance can also influence whether younger employees see a long-term future with a company.

Mid-Career Employees Show the Lowest Satisfaction

Employee satisfaction also followed a U-shaped pattern based on tenure. New hires reported an average eNPS of 51, while long-term employees averaged 57. Employees with two to three years of tenure reported the lowest score at 33.

That middle period can be especially important for construction companies. New employees may enter the industry with enthusiasm but face new challenges as they move beyond onboarding and begin taking on greater responsibilities.

For contractors, maintaining engagement during this stage could help prevent experienced employees from leaving before they reach the point where their skills and industry knowledge provide the greatest value.

Retention Starts with the Employee Experience

Construction's workforce challenges aren't fading into the distance, which makes retention an increasingly important part of workforce strategy.

The BambooHR data suggests companies that pay attention to employee satisfaction may have an advantage when it comes to retaining their workforce. For contractors, that can mean looking beyond recruitment numbers and examining the day-to-day experience of employees at different stages of their careers.

The first-half improvement in employee satisfaction is a positive sign, but the differences among age and tenure groups show that there is no single workforce experience. Construction employers competing for skilled workers may need to take a more targeted approach to keeping employees engaged and building a workforce that stays for the long term.

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